# Labor Share Mediation: Z -> labsh -> CA

| Variable | Step 1: Z->labsh | Step 2: Z->CA | Step 3: Z+labsh->CA |
|:---|---:|---:|---:|
| Z_1 | -0.0659 | 7.0447 | 9.6826 |
| | (0.1092) | (13.0224) | (14.0570) |
| Z_2 | 0.0051 | -0.8193 | -1.2578 |
| | (0.0165) | (1.9525) | (2.0819) |
| Z_3 | 0.0000 | 0.0258 | 0.0439 |
| | (0.0007) | (0.0795) | (0.0841) |
| fiscal_bal_gdp | -0.0006*** | 0.4492*** | 0.4291*** |
| | (0.0001) | (0.0351) | (0.0394) |
| nfa_gdp_lag | 0.0016* | -0.0267 | -0.1581 |
| | (0.0009) | (0.2339) | (0.2311) |
| rgdp_growth | -0.0002*** | 0.2221*** | 0.2302*** |
| | (0.0001) | (0.0222) | (0.0295) |
| log_rel_opw | -0.0275*** | 2.2313*** | 2.9454*** |
| | (0.0039) | (0.4338) | (0.4935) |
| kaopen | -0.0007 | -0.0350 | -0.1746 |
| | (0.0010) | (0.2007) | (0.2177) |
| labsh | | | -4.7898* |
| | | | (2.6948) |
|:---|---:|---:|---:|
| N | 3539 | 4399 | 3509 |
| R² | 0.1900 | 0.1456 | 0.1878 |
| Countries | 127 | 162 | 127 |

*Panel GLS with country and year fixed effects. Standard errors in parentheses.*
*\*p<0.1, \*\*p<0.05, \*\*\*p<0.01*